Wrong policies played havoc with the economy

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The Pakistan Economy Watch (PEW) on Tuesday said despite the lack of resources expansionary policies were adopted to boost businesses and investment which led to a serious economic crisis.

Masses are paying the price for huge concessions given to the influential sectors despite warning by concerned circles, it said.

Despite the sharp depreciation of the rupee, neither the exports increased as expected nor the imports decreased but the life of a common man became a living hell, said Dr. Murtaza Mughal, President PEW.

He said that an interest rate hike in the month of December has become necessary to avoid further problems otherwise imports will continue to increase and inflation will make more holes in the pockets of the poor and mediocre class.

He said that wrong policy decisions have pushed up imports to more than 7.8 billion dollars in the month of November pushing up inflation to unprecedented levels.

The central bank will have to raise interest rates this month or the situation will worsen, he said, adding that now friendly countries are providing loans on strict terms while the only way to control ever-increasing imports is to shrink the economy.